Tel-Instrument Electronics Corp. reported consolidated earnings results for the fourth quarter and full year ended March 31, 2017. For the quarter, the company reported operating loss of $3.3 million as compared to $0.481 million profit in the fourth quarter of 2016. Net loss was $5.6 million as a result of valuation allowance against the tax asset as compared to net income of $0.299 million in 2016. Revenues for the fourth quarter were $4.1 million, a decline of 34% from the $6.2 million for the fourth quarter of fiscal year 2016, primarily as a result of the lower volume as a result of the completion of its three major programs.

For the year, the company reported net sales were $18,745,456 against $24,804,825 a year ago. Loss from operations was $2,371,931 against income from operations of $2,579,920 a year ago. Loss before income taxes was $2,115,324 against income before income taxes of $1,856,121 a year ago. Net loss was $4,759,439 or $1.49 per basic and diluted share against net income of $1,004,153 or $0.31 per basic and diluted share a year ago. The decrease in sales is mostly attributed to the decrease in shipment of the U.S. Army TS-4530A KITS, CRAFT and ITATS units associated with the U.S. Navy programs, which contracts have now been completed. This decrease was partially offset by the shipment of the TS-4530A SETS and CRAFT units sold to Lockheed Martin for the Joint Strike Fighter (“JSF”) program and to other customers.

While the fiscal year 2018 revenues are predicted to decline substantially from 2017 levels, the company forecasting a modest operating profit as the expected reduction in sales should be partially offset by a continued increase in gross margin percentage. The company also forecasting increasing revenues and profitability in fiscal year 2019 when the international and F-35 Mode 5 sales are expected in volume as well increasing sales from new hand-held products.